Q4. Rami paid 7% interest on a $12,500 loan balance. Alia Burke paid $5,000 interest on a $63,500 loan. Based on 1 year:

a. What was the amount of interest paid by Rami?

b. What was the interest rate paid by Alia?

c. Rami and Alia are both in the 28% tax bracket. Since the interest is deductible, how much would Rami and Alia each save in taxes?